Consumer Credit Trends – July 2025: A VantageScore CreditGauge Summary
Recent data from VantageScore’s July 2025 CreditGauge report indicates a slight softening in consumer credit health, alongside shifts in loan origination and delinquency rates. A detailed analysis is available in the CreditGauge LIVE video: https://www.youtube.com/watch?v=skDfH3GTNV4.
Credit Score Trends: The average VantageScore 4.0 decreased to 701 in July, a one-point drop from June. Over the year from July 2023 to July 2025,the percentage of consumers in the VantageScore Subprime tier increased from 18.1% to 18.7%,suggesting a growing segment possibly facing repayment difficulties. Concurrently, the VantageScore Prime tier experienced a 1.4% decrease over the same period.
Delinquencies and Loan Balances: Both mortgage and auto loan delinquencies (30-59 days past due – DPD) rose year-over-year. Mortgage delinquencies increased by 0.11 points, while auto loan delinquencies increased by 0.05 points. Balances for both auto loans and mortgages also increased month-over-month.
loan Originations: Auto loan originations declined to 1.42% in July 2025, down from a peak of 1.76% in April. mortgage originations remained relatively stable between June and July 2025, but were 0.04% higher than in July 2024. These trends in originations are likely attributable to a combination of reduced consumer demand and more stringent lending criteria.
About creditgauge: CreditGauge is a monthly analysis provided to industry stakeholders, alongside interactive tools available at https://vantagescore.com/. These tools allow for deeper analysis of credit metrics, with comparisons to pre-pandemic levels starting in January 2020. Resources include Inclusion360®, Riskratio ™, and MarketGain™. CreditGauge represents the autonomous analysis of VantageScore and does not necessarily reflect the views of Equifax, Experian, or TransUnion.
About VantageScore: VantageScore is experiencing significant growth, with a 55% increase in usage in 2024, reaching 42 billion credit scores. Over 3,700 institutions, including the ten largest U.S. banks, utilize VantageScore credit scores and digital tools. The VantageScore 4.0 model scores approximately 33 million more people than traditional models. The Federal Housing Finance Agency (FHFA) mandate for Fannie Mae and Freddie Mac to use vantagescore 4.0 for mortgage underwriting is expected to expand access to homeownership.
VantageScore is a joint venture owned by Equifax, Experian, and TransUnion. Stay updated with VantageScore on LinkedIn: https://www.linkedin.com/company/vantagescore/posts/ and YouTube: https://www.youtube.com/@VantageScore.
